Podcast
Questions and Answers
Which best describes how standards help domestic producers?
Which best describes how standards help domestic producers?
- Standards require goods to meet basic requirements. (correct)
- Standards restrict the import of cheap goods.
- Standards offer incentives to ensure high quality.
- Standards provide financial support for producers.
Often duties and taxes are imposed on cars that are imported from other countries. What types of incentives are these duties and taxes?
Often duties and taxes are imposed on cars that are imported from other countries. What types of incentives are these duties and taxes?
- Positive incentive and tariff.
- Negative incentive and subsidy.
- Positive incentive and subsidy.
- Negative incentive and tariff. (correct)
What is the purpose of quotas?
What is the purpose of quotas?
- To ban all imports from a country.
- To limit how much of a good can be imported. (correct)
- To ensure specific goods are not available to consumers.
- To keep prices on domestic goods low.
What term describes a ban or restriction on trade with another country?
What term describes a ban or restriction on trade with another country?
Tariffs and subsidies are both types of:
Tariffs and subsidies are both types of:
Which type of goods becomes more expensive as a result of tariffs?
Which type of goods becomes more expensive as a result of tariffs?
How are subsidies similar to tariffs?
How are subsidies similar to tariffs?
What do quotas and embargoes have in common?
What do quotas and embargoes have in common?
Which best describes why countries establish limits on trade? Check all that apply.
Which best describes why countries establish limits on trade? Check all that apply.
On which country has the United States imposed an embargo since 1960?
On which country has the United States imposed an embargo since 1960?
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Study Notes
Trade Barriers Overview
- Standards require goods to meet basic quality requirements, assisting domestic producers in maintaining product integrity.
- Duties and taxes on imported cars function as negative incentives and tariffs, discouraging foreign purchases.
Quotas and Embargoes
- Quotas limit the amount of a specific good that can be imported, controlling market supply.
- An embargo serves as a comprehensive ban or restriction on trade with another country, affecting economic relationships.
Types of Incentives
- Tariffs and subsidies are classified as incentives, influencing market dynamics and pricing structures.
- Tariffs specifically increase the cost of imported goods, making them less attractive compared to domestic alternatives.
Economic Strategies
- Both subsidies and tariffs aim to disadvantage imported goods, fostering a competitive edge for local producers.
- Quotas and embargoes share the characteristic of setting limits on imported goods, impacting availability and market prices.
National Trade Limits
- Countries establish trade limits to:
- Restrict foreign influence in strategic sectors.
- Control the importation of foreign goods to protect local industries.
- Impose punitive measures against other nations in international disputes.
U.S. Trade Restrictions
- The United States has maintained an embargo against Cuba since 1960, restricting trade and economic interaction.
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